Revolving Loan Fund

The City of Batavia’s Economic Development Revolving Loan Fund (RLF) was established as an incentive for targeted businesses to locate or expand in the city. A pool of over $200,000 has been set aside for projects that support establishment of new businesses or expansion of existing commercial and industrial operations.

Loan Structure
Loans are available for up to 25% of a project’s cost, but are not to exceed $200,000 per project. Interest is charged at below prime rate. Legal and financial-analysis fees for loan initiation only incurred by the Applicant are paid by the city, however, all other loan closing costs will be deducted from final loan disbursement. Requests for loans are evaluated by the city’s Government Services Committee against public policy objectives established for the RLF program, including the level of private investment, job creation, and new tax generation.

Eligibility
Eligible projects include acquisition of real property, installation of utility infrastructure, construction or expansion of commercial or industrial buildings, and purchase of equipment. City funds are not available for working capital, refinancing, or business start-ups.

Basic Qualifications
To be eligible for a loan, a project must meet all of the following minimum qualifications:

The funds must be used for the purchase or construction of fixed assets such as land, buildings, and capital equipment. Funds cannot be used for working capital, refinancing, or business start-ups. Refinancing an existing RLF loan will be considered only when there is substantial benefit to the city or if the applicant can demonstrate that a hardship exists.

The project must be located within the city limits of Batavia. Preference is given to non-retail projects located in designated industrial areas.

The developer or company must demonstrate firm lender and equity commitments, sign a letter of commitment regarding investment and job creation, and cooperate with city staff and City Council.

Office, industrial, warehouse, distribution, and related businesses are given preference in reviewing loan requests. Retail establishments and restaurants will be considered but are given second priority.

The applicant must be able to demonstrate that the project would not be feasible without the city loan. The project must not begin until the city receives an environmental release letter for the site and the loan is given final approval by the City Council or a preliminary Resolution of Intent is approved by the Government Services Committee; commencement of the project prior to approval will disqualify the loan request from consideration.

The benefit to the city in the form of tax dollars, jobs, or other measures must be significant enough to warrant city participation.

Download an application (PDF) online. Questions about whether your business is eligible or other questions should be directed to Christopher Aiston, Economic Development Consultant at 630-454-2061 or via email.